Even as the sales performance in the US market is impacted by pricing pressure, double-digit growth in the Indian market has helped ease the pressure on consolidated revenues of Indian pharma majors. For the March quarter (Q4FY26), while US revenues fell by high single digits over the year-ago quarter, India revenues grew by 14 per cent.
The robust growth in the domestic market has continued into the June quarter as well, with domestic firms registering growth of 10.3 per cent in April and 10.9 per cent in May.
This is the sixth consecutive quarter of double-digit growth on a Y-o-Y basis for the Indian pharma sector. Brokerages expect the healthy growth momentum to continue in FY27 on the back of improved offtake in chronic therapies.
In the Nifty Pharma index and among companies that derive over half their revenues from the domestic market, brokerages are positive on the third-largest pharma company by market capitalisation, Torrent Pharma. The stock has outperformed its major peers with a 44 per cent return over the past year, while the Nifty Pharma index has delivered about 12 per cent during this period. While the immediate triggers are its Q4FY26 performance and May domestic sales, a healthy growth outlook across key categories and geographies is expected to support the stock price.
In May 2026, the company reported the highest growth by value among top firms at 17.8 per cent Y-o-Y. Even on a moving annual total basis, Torrent’s growth was the highest at 14.1 per cent, point out Saion Mukherjee and Kushal Chovatia of Nomura Research. The brokerage has a neutral rating on the company with a target price of Rs 4,670.
Antique Stock Broking expects the Indian pharma market to maintain healthy momentum in FY27, led by continued improvement in cardiac, neuro/central nervous system and antidiabetic therapies. These segments are benefiting from a combination of major products losing exclusivity and a steady pipeline of new launches, which should support sustained market expansion. The brokerage expects the sector to grow by 12 per cent in FY27, driven by price increases and new products, with GLP generic launches contributing 1–2 per cent to growth. Sumit Gupta and Ankur Bhadekar of the brokerage prefer Torrent Pharma in its coverage universe given the healthy growth outlook and favourable product and therapy mix. The brokerage has a buy rating with a target price of Rs 5,230.
In the March quarter, the company was among the few pharma companies to register 16 per cent Y-o-Y growth (excluding the JB Chemicals acquisition) in Q4FY26 revenue. Its growth was driven by strong performance across geographies. While India registered 15 per cent growth, Brazil grew by 17 per cent. The US and Germany operations posted growth of 16 per cent each. While its gross margins for the base business improved by 220 basis points Y-o-Y, operating profit was up 16 per cent.
Going ahead, sustaining strong branded generics momentum in India and Brazil will be the main driver. Further, maintaining the margin trajectory and the integration of JB Chemicals, wherein the management is targeting cost synergies of Rs 400 crore over the next two to three years and revenue synergies from cross-selling, will also be key monitorables.
Torrent stands out among Indian peers due to its preference for the India branded generics business, which has fetched good returns, point out analysts led by Siddhant Khandekar of ICICI Direct. The brokerage has a buy rating with a target price of Rs 5,100.
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